MARKET COMMENTARY
Natural rubber is seen rising in the major overseas market on Wednesday. TOCOM rubber futures gained nearly two per cent tracking rebound in crude oil prices. Concerns over production following reports that the ongoing weather phenomenon El Nino may be followed by La Nina probably influenced the sentiments as well. SHFE rubber futures inched higher as well.
Amidst thin supplies, rise in natural rubber prices in the major overseas market bettered the sentiments in the local market. RSS4 in the spot market was quoted around Rs117-118 a kg on Tuesday, its highest level in about eight months.
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Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support prices.
China’s imports of natural rubber fell 21.35 percent in February to 139,376 tonnes.
Vietnam is soon likely to join the International Rubber Consortium Ltd (IRCo), a rubber cartel that ensures fair and remunerative income for small holders of its member nations, an industry body official said.
Despite the government’s measures to stabilise the rubber market, it may take a couple of years to correct the oversupply and the resultant lower prices and ensure markets offer farmers sustainable prices, said Sheela Thomas, secretary general of the Association of Natural Rubber Producing Countries.
Indian’s natural rubber production and imports falls sharply in February by 10 and 12 percent respectively according to the Rubber Board. The country imported 27280 tonnes and production stood at 37000 tonnes. Consumption declined as well by 1.0 per cent to 82500 tonnes.
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